US citizens and green card holders must file a US tax return and report their worldwide income no matter where they live, because the United States taxes based on citizenship rather than residency.
Filing is required either way, but most expats end up owing little or nothing once the Foreign Earned Income Exclusion and Foreign Tax Credit are applied.
If you are a US citizen or resident alien living abroad, you may be wondering whether you still need to deal with US taxes. The short answer is yes, you still need to file.
Whether you actually owe anything is a separate question that depends on your income, filing status, and the exclusions you qualify for, and many expats file every year without owing a dollar. The requirement to file does not go away simply because you moved.
Filing US taxes as an expat can feel confusing, especially once foreign income, foreign accounts, and multiple tax systems enter the picture. At Universal Tax Professionals, we specialize in expat tax preparation and have helped thousands of Americans abroad meet their US tax obligations correctly and on time.
Key Summary: Filing US Taxes Abroad
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US citizens and green card holders owe US tax on worldwide income no matter where they live, because the US taxes based on citizenship, not residency.
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You must file if your income is at or above your filing status threshold ($15,750 for a single filer in 2025), and self-employed expats must file once net earnings reach $400.
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FBAR and FATCA are separate requirements with separate thresholds and forms; missing either can trigger steep penalties even when no tax is owed.
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The FEIE and Foreign Tax Credit can eliminate double taxation, but neither removes the obligation to file, and self-employment tax still applies even when income is excluded.
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Behind on filing? The Streamlined Filing Compliance Procedures let non-willful non-filers catch up on the last three years of returns without penalties.
2026 US Tax Filing Requirements for Americans Abroad
| Taxation basis | Citizenship-based. Worldwide income is taxed regardless of where you live or earn it. |
| FEIE limit (2025 / filed 2026) | $130,000 per qualifying person |
| FEIE limit (2026 / filed 2027) | $132,900 per qualifying person |
| FBAR threshold | $10,000 combined highest balance in foreign financial accounts |
| FATCA (Form 8938) threshold | Starts at $200,000 for single filers abroad; higher for joint filers |
| Standard deadline | April 15, with an automatic extension to June 15 for filers living abroad |
| Behind on filing? | The Streamlined Filing Compliance Procedures let non-willful non-filers catch up without penalties |
Why the US Taxes Citizens Living Abroad
Under US tax law, citizens and resident aliens (green card holders) are taxed on their worldwide income no matter where they live.
This applies to wages, self-employment income, investment income, rental income, pensions, and alimony, whether the income was earned in the US or overseas.
The United States is one of only two countries that taxes based on citizenship rather than residency or where the income was earned. Most countries use a territorial or residence-based system, so an American who has lived abroad for decades, or who was born abroad and has never set foot in the US, can still have a US filing obligation.
You may also have a filing requirement even with no income of your own if you are married to someone who does, since your filing status affects the threshold that applies to you.
Who Has to File a US Tax Return From Abroad
The filing thresholds for expats are the same as for taxpayers living in the US.
If your gross income is at or above the amount for your filing status, you generally need to file a federal return, even if none of it was earned in the US.
| Filing status | Under 65 | 65 or older |
| Single | $15,750 | $17,750 |
| Married Filing Jointly (MFJ) | $31,500 | $33,100 (one spouse 65+) / $34,700 (both 65+) |
| Married Filing Separately (MFS) | $5 | $5 |
| Head of Household (HOH) | $23,625 | $25,625 |
| Qualifying Surviving Spouse | $31,500 | $33,100 |
Two details catch expats off guard.
First, a US expat married to a non-US spouse who does not file jointly is normally treated as Married Filing Separately, which carries a filing threshold of only $5.
Second, self-employed expats must file if their net self-employment earnings are $400 or more, regardless of the thresholds above, because that income also triggers self-employment tax.
Find Out What You Need to File
Not every American abroad owes US tax, but most still have filing obligations. Let our expat tax professionals review your situation and explain what applies to you.
FBAR and FATCA: Two Separate Reporting Requirements
Expats with foreign financial accounts often have two federal reporting obligations that are easy to confuse.
FBAR (FinCEN Form 114)
If you had a combined balance of more than $10,000 across all your foreign bank, investment, pension, or insurance accounts at any point during the year, you must file an FBAR with the US Treasury’s FinCEN, separate from your tax return.
Penalties for missing this filing can be steep even when no tax was owed, which is why the IRS offers catch-up relief for non-willful cases.
FATCA (Form 8938)
FATCA reporting is filed with your tax return itself, not separately, and the thresholds are higher and vary by filing status and whether you live in the US or abroad.
A single filer living abroad generally needs to report specified foreign assets once they exceed $200,000 at year end or $300,000 at any point in the year.
How Expats Avoid Double Taxation
US citizens abroad often worry about paying tax twice, once to their country of residence and again to the US. Double taxation is possible, but US law includes tools designed to reduce or eliminate it for most filers.
Foreign Earned Income Exclusion (FEIE)
The Foreign Earned Income Exclusion, claimed on Form 2555, lets qualifying expats exclude up to $130,000 of foreign-earned income for the 2025 tax year ($132,900 for 2026).
To qualify, you must pass either the Physical Presence Test, generally 330 full days outside the US in a 12-month period, or the Bona Fide Residence Test. The FEIE only applies to earned income such as wages or self-employment income, not to interest, dividends, capital gains, or pensions, and it does not reduce self-employment tax.
Foreign Tax Credit (FTC)
The Foreign Tax Credit, claimed on Form 1116, offsets US tax dollar-for-dollar for income taxes you already paid to a foreign government. Because you cannot claim the FTC on income already excluded by the FEIE, most expats compare both options and use whichever produces the better outcome, or combine them for income above the FEIE limit.
Taxes on Foreign Property, Rental Income and Investments
Rental income from foreign property is taxable by the US just like rental income from a US property, even if that income is also taxed where the property is located.
The Foreign Tax Credit can offset foreign income tax paid on that rental income. Selling a home while living abroad brings its own set of rules around gain exclusions and currency conversion
Self-Employment Tax and Social Security While Living Abroad
Self-employed expats generally owe US self-employment tax of 15.3% on net earnings, even if the FEIE excludes that same income from federal income tax.
This surprises many freelancers and digital nomads who assume the FEIE covers everything.
If you work for a foreign employer instead, whether you pay into the US or a foreign social security system usually depends on whether your country of residence has a Totalization Agreement with the US. Where an agreement exists, you typically pay into only one system. Where none exists, you may owe US Social Security tax on foreign self-employment earnings regardless.
Get Help With Your 2026 US Tax Filing
Stay compliant and avoid missed forms, deadlines, and potential penalties. Work with an experienced expat tax professional to file accurately and confidently.
What If You Have Not Been Filing? Catching Up Without Penalties
Many expats discover years later that they should have been filing all along, often after moving, opening a foreign account, or applying for a passport renewal.
For non-willful non-filers, the Streamlined Filing Compliance Procedures allow you to catch up on the last three years of tax returns and six years of FBARs without the penalties that normally apply to late filing. Ignoring the issue carries real consequences: the IRS can flag unpaid tax debt above a set threshold and ask the State Department to deny or revoke a US passport until the debt is resolved.
Even If You Owe Nothing, You Still Have to File
Claiming the FEIE and FTC together can bring US tax liability to zero for many expats, but a zero balance does not remove the filing requirement itself.
The IRS requires an annual return from every citizen and resident alien who meets the income thresholds, whether or not any tax is actually due. Skipping the return, even when you are confident you owe nothing, still risks penalties and interest if it turns out you owed more than expected.
